Turkey will launch a carbon market in 2027 as part of a new emissions trading system.

Fatma Varank, Deputy Minister of Environment, Urbanization and Climate Change, announced that Turkey will launch its carbon market in 2027 after establishing an Emissions Trading System (ETS) in accordance with the recently passed Climate Law, according to Turkish media reports.

Speaking to the Turkish Parliament's Environment Commission during a briefing on preparations for the United Nations Climate Change Conference (COP31), Varank said the ETS would be a key tool in Turkey's emissions reduction strategy.

ETS revenue to support fair transition

According to Varank, 10 percent of the revenue generated through ETS will be used to support a fair transition. She stated that Turkey is among the limited number of countries that have officially allocated a portion of carbon market revenue for this purpose, and indicated that the government will seek broader international recognition of equitable transition issues during COP31. Varank noted that progress on this issue has already been achieved during the recent climate talks held in Bonn.

The private sector is expected to play a key role

The Deputy Minister emphasized that the ETS is designed to directly support efforts to reduce emissions while maintaining the active participation of the private sector. She noted that Turkish business has been one of the strongest supporters of COP31 preparations, reflecting a growing understanding of the requirements of sustainable development and ongoing corporate efforts related to climate change and environmental performance.

Referring to Turkey's priorities regarding COP31, Varank stated that the country intends to achieve its goals for 2035 through the conference's action program. According to her, this initiative has already received broad international support, and it is expected that the participating countries will voluntarily achieve the agreed goals under the proposed monitoring mechanism.

Investments in electrification and the energy system are emphasized

Varank also stressed the importance of electrification to reduce emissions. She said that achieving a global electrification target of 35 percent would make a significant contribution to efforts to reduce emissions. Although renewable energy technologies have become more accessible, she cited insufficient network infrastructure as one of the main obstacles on the way.